Maryland Insurance Study Guide
Exam and Actual Answers.
When recording a deed or deed of trust, how many copies of the intake sheet must be
submitted to the clerk of the court with the recording? - Answer 4
In a metes and bounds legal description, the following is true? - Answer All of the above;
Course is the same as direction, distance is the same as length and an arc is a part of a circle
Which ALTA title policy has a check list for endorsements? - Answer ALTA Short Form Loan
Policy
Which of the following is not required to be accompanied by an intake sheet at the time of
recording? - Answer (All of the above) Assignment, release, Power of attorney.
Names of parties to a real estate transaction must be ran through a national database that
identifies potential pursuant to? - Answer The Patriot Act
Which of the following creates a valid and enforceable restriction on land? - Answer A
recorded covenant
Most title insurance policies insure against all of the following except? - Answer Eminent
domain
Pursuant to Maryland Law, a loan for a secondary mortgage cannot be conducted? - Answer At
the borrower's house
A location drawing might show all of the following except? - Answer Boundary lines
All of the following are characteristics of an ALTA loan policy EXCEPT? - Answer Contingencies
The policy limit noted in a title insurance policy applies to? - Answer Cumulative Claims
,If a joint tenant sells their interest in a property, the tenancy becomes? - Answer Tenants in
common
In Maryland, funds received by title companies from a sales transaction must be deposited into?
- Answer A trust account
A power of attorney ceases when? - Answer (Any of the above) The power of attorney is
revoked, The person granting the powers dies, and Statutory expiration.
Schedule BI of a title commitment is reserved for? - Answer Requirements
In Maryland, if a release is not available for recording, the following may be recorded in its
place? - Answer (Either of the above) Promissory note, stamped paid in full by the note holder
or Copy of the cancelled check with an affidavit.
In a foreclosure sale, all interested parties, have the following rights Except? - Answer Have a
right to choose the foreclosure sale price
Before a foreclosure can occur in Maryland, a Notice of Intent to foreclose (NOI) must be sent to
the borrower? - Answer 45 days before the sale
An acceleration clause in a deed of trust? - Answer Allows the lender to demand the balance
due upon default
An owner's title insurance policy covers? - Answer (All of the above) Defects in title,
Marketability and
Unpaid property liens of previous owner.
A senior mortgage is the? - Answer Mortgage in priority position
Real estate loans are secured by the execution and recording of? - Answer A deed of trust,
promissory note and right to cancel
RESPA and the Truth In Lending Act require that the borrower? - Answer (All of the above)
Receives the Hud-1 settlement statement 1 day prior to settlement, Receives the Closing
, Loan proceeds disbursed at a settlement must be? - Answer (Any of the above) as long as they
are guaranteed and available immediately
Checks received by a title company in a real estate transaction must be drawn on a bank insured
by? - Answer FDIC
A title insurance commitment is an? - Answer An offer with respect to contract terms
An analysis of ownership rights in a piece of property is done by reviewing? - Answer A chain
of title
The habendum clause ("to have and to hold" clause) purpose is to further define the rights of a
grantee in a? - Answer Deed
When someone files bankruptcy, their assets become under the control of? - Answer The
bankruptcy trustee
The title insurance insure closing letter/closing protection letter is issued to the lender along
with? - Answer The title commitment
Most claims under the title insurance closing are as a result of? - Answer Failure of a title
company to comply with closing instructions
The hud-1 and closing disclosure form are prepared pursuant to? - Answer All of the above
(The lender's instructions, The real estate sales contract, and The broker's instructions)
In an insurance policy, the loss payee is usually? - Answer The lender
In a deed of trust, the borrower is the? - Answer Grantor
In a deed, the borrower is the? - Answer Grantee
Additional funds collected by a lender to pay hazard insurance and taxes are held in? - Answer
An escrow account
Exam and Actual Answers.
When recording a deed or deed of trust, how many copies of the intake sheet must be
submitted to the clerk of the court with the recording? - Answer 4
In a metes and bounds legal description, the following is true? - Answer All of the above;
Course is the same as direction, distance is the same as length and an arc is a part of a circle
Which ALTA title policy has a check list for endorsements? - Answer ALTA Short Form Loan
Policy
Which of the following is not required to be accompanied by an intake sheet at the time of
recording? - Answer (All of the above) Assignment, release, Power of attorney.
Names of parties to a real estate transaction must be ran through a national database that
identifies potential pursuant to? - Answer The Patriot Act
Which of the following creates a valid and enforceable restriction on land? - Answer A
recorded covenant
Most title insurance policies insure against all of the following except? - Answer Eminent
domain
Pursuant to Maryland Law, a loan for a secondary mortgage cannot be conducted? - Answer At
the borrower's house
A location drawing might show all of the following except? - Answer Boundary lines
All of the following are characteristics of an ALTA loan policy EXCEPT? - Answer Contingencies
The policy limit noted in a title insurance policy applies to? - Answer Cumulative Claims
,If a joint tenant sells their interest in a property, the tenancy becomes? - Answer Tenants in
common
In Maryland, funds received by title companies from a sales transaction must be deposited into?
- Answer A trust account
A power of attorney ceases when? - Answer (Any of the above) The power of attorney is
revoked, The person granting the powers dies, and Statutory expiration.
Schedule BI of a title commitment is reserved for? - Answer Requirements
In Maryland, if a release is not available for recording, the following may be recorded in its
place? - Answer (Either of the above) Promissory note, stamped paid in full by the note holder
or Copy of the cancelled check with an affidavit.
In a foreclosure sale, all interested parties, have the following rights Except? - Answer Have a
right to choose the foreclosure sale price
Before a foreclosure can occur in Maryland, a Notice of Intent to foreclose (NOI) must be sent to
the borrower? - Answer 45 days before the sale
An acceleration clause in a deed of trust? - Answer Allows the lender to demand the balance
due upon default
An owner's title insurance policy covers? - Answer (All of the above) Defects in title,
Marketability and
Unpaid property liens of previous owner.
A senior mortgage is the? - Answer Mortgage in priority position
Real estate loans are secured by the execution and recording of? - Answer A deed of trust,
promissory note and right to cancel
RESPA and the Truth In Lending Act require that the borrower? - Answer (All of the above)
Receives the Hud-1 settlement statement 1 day prior to settlement, Receives the Closing
, Loan proceeds disbursed at a settlement must be? - Answer (Any of the above) as long as they
are guaranteed and available immediately
Checks received by a title company in a real estate transaction must be drawn on a bank insured
by? - Answer FDIC
A title insurance commitment is an? - Answer An offer with respect to contract terms
An analysis of ownership rights in a piece of property is done by reviewing? - Answer A chain
of title
The habendum clause ("to have and to hold" clause) purpose is to further define the rights of a
grantee in a? - Answer Deed
When someone files bankruptcy, their assets become under the control of? - Answer The
bankruptcy trustee
The title insurance insure closing letter/closing protection letter is issued to the lender along
with? - Answer The title commitment
Most claims under the title insurance closing are as a result of? - Answer Failure of a title
company to comply with closing instructions
The hud-1 and closing disclosure form are prepared pursuant to? - Answer All of the above
(The lender's instructions, The real estate sales contract, and The broker's instructions)
In an insurance policy, the loss payee is usually? - Answer The lender
In a deed of trust, the borrower is the? - Answer Grantor
In a deed, the borrower is the? - Answer Grantee
Additional funds collected by a lender to pay hazard insurance and taxes are held in? - Answer
An escrow account
